April 1999
QT211: QUANTITATIVE ANALYSIS FOR MANAGEMENT

QUESTION 5

Total Marks: 20 Marks

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SAMPLE STUDENT'S SOLUTIONS
for Question 5

 

Irwin Transport Company is setting up an office to handle phone reservations. During the busy period it is expected that phone calls will come in at a rate of 1 every 4 minutes. From past experience management knows that, on the average, it takes about 3 minutes to process a call. When a customer calls in and all the agents are busy, the caller listens to music until an agent is free.

 

[2]
(a) Assume Irwin Transport Company will staff the office with one reservation agent.
(i) What percentage of the time will customer calls be answered immediately? [3]
(ii) How long will the average customer need to wait before an agent comes on the line? [2]
(iii) What is the call intensity? [1]
(iv) At any given time, how many customers will be in the system?

 

[2]
(b) If Irwin Transport Company adds a second reservation agent then calculate the following:
(i) What percentage of the time will a customers call be answered immediately? [5]
(ii) How long will the average customer need to wait before an agent comes on the line? [4]
(iii) At any given time, how many customers will be waiting? [3]